Business News
Scripps Networks Interactive Provides Financial Forecast for Third Quarter
Thursday 24. July 2008 - Scripps Networks Interactive Inc. (NYSE:SNI), the parent company of such popular television and Internet lifestyle brands as HGTV, Food Network and DIY Network, today provided financial forecasts for the third quarter and affirmed its previously issued pro forma guidance for the full-year 2008.
Scripps Networks Interactive began operations as a separate publicly traded company on July 1 following its spin-off from The E. W. Scripps Company. Second-quarter results for the businesses operated by Scripps Networks Interactive were reported today in a separate press release issued by E. W. Scripps.
Third-quarter financial forecasts for Scripps Networks Interactive businesses, by operating segment, are as follows:
Lifestyle Media
Total revenue is expected to be up 5 to 7 percent. Total revenue growth for the full-year 2008, on a pro-forma basis, is expected to reach the upper end of the previously issued guidance of 8 to 10 percent. Total expenses are expected to increase year-over-year by a mid to high single digit percentage.
In addition to HGTV, Food Network and DIY Network, the company’s Lifestyle Media segment includes Fine Living Network, country music network Great American Country, and SN Digital, the segment’s growing portfolio of food- and shelter-oriented interactive businesses. SN Digital brands include FoodNetwork.com, HGTV.com, DIYNetwork.com, RecipeZaar.com, FrontDoor.com, HGTVPro.com and UpMyStreet.com.
Interactive Services
Combined segment profit is expected to be $8 to $10 million during the third quarter. Full-year segment profit is expected to be $55 to $65 million, on a pro forma basis, as previously forecast.
The company’s Interactive Services segment includes its leading online comparison shopping businesses, Shopzilla, BizRate and uSwitch.
Earnings per share
Third-quarter earnings per share from continuing operations, excluding spin-off related costs, are expected to be between 35 and 38 cents.
Other items
The company also provided its third-quarter forecast for other items as follows:
Corporate expenses: $10 to $12 million, excluding costs related to the
company’s spin-off from E. W. Scripps.
Minority interest: $18 to $19 million.
Capital expenditures: $30 million.
Tax rate: 33 to 34 percent.
Debt and quarterly dividend.
Net debt was $275 million on July 1.
The company expects to initially set its quarterly dividend at about 7.5 cents per share on approximately 163 million shares outstanding.